Ivan Rakitic signed a new contract with Barcelona on Thursday that runs through 2021.
Rakitic's new deal includes a buyout clause of €125 million. Rakitic had been linked to a move to Manchester City this summer.
Rakitic's previous deal was set to run out in 2019.
Rakitic has been in and out of the Barcelona side recently, and his lack of minutes and increased competition from Andre Gomes, Denis Suarez and Rafinha fueled speculation he could join City.